EUR/USD struggles to advance under key resistance

<p>EUR/USD (daily chart) has struggled to continue its advance just under the key 1.3300 resistance, a level that has served as major support and resistance […]</p>

EUR/USD (daily chart) has struggled to continue its advance just under the key 1.3300 resistance, a level that has served as major support and resistance in the past, most recently just late last week. This pause below resistance comes after a substantial advance for the past two weeks that brought prices up from close to the 1.2800 support all the way up to the current highs near 1.3300 resistance. In the process of this climb, prices broke out above key prior resistance levels, including the 1.3000 figure (also around the 50-day moving average) and the 1.3150 level. The pair has also risen above the rough head-and-shoulders pattern of late April and early May.

Having now bumped up against and retested major 1.3300 resistance, EUR/USD is now at a critical juncture. A strong breakout above 1.3300 would clearly confirm a bullish trend continuation, with further upside resistance targets around 1.3500 and then 1.3700. If 1.3300 is respected as resistance with a turn back to the downside, the major intermediate support objective remains around the key 1.3000 level.

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